Construction Bank expected to fold up by Aug 31

JoyBusiness has reliably been informed that Construction Bank is expected to fold up by the end of August 2018. The closure is subject to the Central Bank’s approval.

Sources say an official notification has been sent to the regulator to approve the closure.

According to reports, some staff have been told not to report for duty tomorrow and only a skeletal staff will be in place to manage the process until the eventual closure.

Why?

According to sources, the move has been influenced by some challenges in meeting the new capital requirement of ¢400 million by the close of this year. JoyBusiness understands that a Board meeting held earlier this week finalized the decision to fold up. After the meeting, the Board agreed to surrender their licence to the regulator. A communication has reportedly been already sent out to customers on how to retrieve their deposits.

Sources say the fold up has nothing to do with liquidity challenge, but purely a shareholders decision, resulting in a regulatory action.

The Construction Bank last year secured approval from the Bank of Ghana (BoG) to operate as a Universal Bank.

The Bank is a wholly Ghanaian-owned company that provided banking services in project finance, commercial and consumer banking with specialization in construction, infrastructure and mortgage financing.

JoyBusiness has learned the Central Bank would in the coming days take action on banks that are facing serious liquidity challenges.

The Bank is committed to delivering customized banking services and a variety of banking products to businesses in the sector.

With a team of expertly-qualified employees and shareholders, the Construction Bank offers a broad range of products and services, including retail, commercial, corporate and investment banking in addition to our tailor-made construction dealings.

It has Steve Kpordzih as its Managing Director and Chief Executive with Dr Asare Akuffo former Managing Director of HFC Bank as its Board Chair.